Credit check - how to?

[Curious]

Guys - those of you who manage your properties yourselves - how do you run credit checks on new tenants? Long time ago I used a ResumeCheck - it worked but was quite expensive (around $200 + GST per tenant, IIRC). Then I used a letting agent a couple of times who did the check as part of their service but she's changed her job now. So for the next applicant I'm going to do it myself again.

What service do you use for tenant checks? I know of TenancyTribunal, Veda (wait - as an NZPIF member I may even get a discount!), TINZ. What else? Any good or bad experiences in this field?

[FlyingKiwi]

Hi Curious, I can't add many to your list other than perhaps asking for references - preferably from a professional property manager or a source that can be verified? I've had pretty bad experiences with tenants that had clean credit ratings but turned out to be the debtors from hell. In hindsight, there were a few warning alarms early on but I was in a hurry to get a tenant, the Veda check came out OK, and I ignored my misgivings. All I can say is that these people seem to target private landlords, so watch out for a history of moving around, multiple names appearing on the Veda report, unreliable/sporadic communication in the early days, being unable to find them online (i.e. no Facebook accounts or general web presence), and sob stories about why they need the house as soon as possible. If ResumeCheck worked for you, I say keep using it!

[PTILoveYou]

Centrix is pretty cheap for credit check, $10 incl gst I think.

[Ghouly]

I've used Cedar Credit. Cost between $10-20, so there is definitely cheaper options around.

[Curious]

I ended up using TINZ - as APIA member I did't have to pay the membership fee and results are immediately available.

[MAXNZ]

I ended up using TINZ - as APIA member I did't have to pay the membership fee and results are immediately available.

Do you still use TINZ? How good and reliable is it?

[Tan]

I used to use the free one through the property investors assn. Also, always check references. I have discovered people do not do this much! If you are not sure what to ask just start with the obvious and try to get chatting a bit, how did the tenancy go, any late payments, was house kept in good condition, garden condition. Generally if you ask if they would rent to them again you can get a feel for the quality of the reference.

[Keys]

Ring the past landlord and say something like:

I have a credit application from (new tenant) and they put you as a reference. How do you know them?

[MAXNZ]

I have a credit application** from (new tenant)

Do you mean tenant application, or.... credit application ?.. That would be a bit cunning

[Keys]

Credit application. The landlord (if they are the old landlord) will immediately know. The friend will be totally out of their depth.

[donthatetheplayer]

Centrix - cheap, easy and reliable. Results are available immediately. It also lists any tenancy tribunal claims.

I take a reference from previous landlord and Employer. I call the company number (not mobile) to make sure the Employer is real and not a friend. Takes 2-5 mins per reference. Too easy not to do!

[MAXNZ]

Did anyone try other system to compare? Veda, TINZ etc? So far looks like Centrix in majority..

[tallica1]

Did anyone try other system to compare? Veda, TINZ etc? So far looks like Centrix in majority..

Veda (old name Baycorp) has been around longer compared to Centrix and therefore have far more data so that's why Centrix is cheaper - you get what you pay for. As for TINZ, it specialises in providing tenancy specific information and fills the 'gap' that credit reporting systems like Veda and Centrix can't provide such as tenant ratings and 14 day notices that are uploaded by landlords/PM's.

TINZ provides a Veda credit check with LTNZ drivers licence checks along with searches on the Ministry of Justice Tenancy Tribunal orders database, and the option to search the Ministry of Justice Fines database for criminal offenses as part of their online reports.